INCOME TAX (SALARIES).
No. 59 of 1930.
An Act to impose a Tax upon certain Incomes being Salaries payable by the Commonwealth or by an Authority under the Commonwealth.
[Assented to 15th December, 1930.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Income Tax (Salaries) Act 1930.
Incorporation.
2. The Income Tax (Salaries) Assessment Act 1930 shall be incorporated and read as one with this Act.
Imposition of income tax.
3. Income tax is imposed at the amounts declared in this Act upon each periodical payment of salary payable by the Commonwealth or by the North Australia Commission.
Amount of tax.
4. The amount of income tax upon each periodical payment of salary shall be—
(a) in the case of any senator or member of the House of Representatives who holds any of the following offices:—
(i) Minister of State for the Commonwealth or Presiding Officer in either House of the Parliament—the amount which is the equivalent of fifteen per centum of that payment; and
(ii) Chairman of Committees or Leader of the Opposition in either House of the Parliament—the amount which is the equivalent of twelve and one-half per centum of that payment;
(b) in the case of any other senator or member of the House of Representatives—the amount which is the equivalent of ten per centum of that payment; and
(c) in the case of any taxpayer to whom the last two preceding paragraphs do not apply—the amount which bears to the annual amount of tax the same proportion as that payment bears to the annual salary.
Annual salary and annual tax.
5. For the purposes of paragraph (c) of the last preceding section—
(a) the annual salary shall be the total amount which would be paid in respect of a year if periodical payments at the same rate of salary were continued in respect of the year; and
(b) the annual amount of tax shall be the amount specified in the second column of the Schedule to this Act opposite to the salary group within which the annual salary falls.
THE SCHEDULE.
Annual Salary | Annual Amount of Tax. |
Exceeding £725 and not exceeding £805 | The amount by which the salary exceeds £725 |
Exceeding £805 and not exceeding £1,000 | The amount which is the equivalent of 10 per centum of salary |
Exceeding £1,000 and not exceeding £1,028 | The amount by which the salary exceeds £900 |
Exceeding £1,028 and not exceeding £1,500 | The amount which is the equivalent of 12½ per centum of salary |
Exceeding £1,500 and not exceeding £1,544 | The amount by which the salary exceeds £1,312 10s. |
Exceeding £1,544................ | The amount which is the equivalent of 15 per centum of salary |
Overview
The Income Tax (Salaries) Act 1930 was enacted to impose a tax on salaries paid by the Commonwealth or by an authority under the Commonwealth, including the North Australia Commission. Assented to on 15th December 1930 by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, the Act was designed to address the need for a structured income tax regime applicable to salaries. The Act incorporates the Income Tax (Salaries) Assessment Act 1930, establishing a framework for determining the amount of tax to be levied on various categories of salary earners, with specific rates for different positions within the government and other taxpayers. The policy objective of the Act was to ensure a consistent and fair approach to taxing salaries, providing a clear structure for tax imposition based on salary brackets.
Scope and Application
The Income Tax (Salaries) Act 1930 applies to income derived from salaries paid by the Commonwealth or by the North Australia Commission. This Act imposes an income tax on these periodical salary payments, distinguishing between different categories of recipients, including senators, members of the House of Representatives, and other taxpayers. The tax rates vary based on the position held by the recipient, with higher rates applicable to more senior positions such as Ministers of State and Presiding Officers. For other senators or members of the House of Representatives, a lower rate applies, and for all other taxpayers, the rate is determined by their annual salary bracket, as outlined in the accompanying schedule. The Act's jurisdiction is limited to the Commonwealth and the North Australia Commission, and it does not explicitly mention any exclusions or exemptions. Subordinate instruments may further detail the application and administration of the Act, though these are not elaborated upon within the primary text of the Act itself.
Key Provisions
The Income Tax (Salaries) Act 1930 (sections 1 to 5) establishes the framework for imposing income tax on salaries paid by the Commonwealth or the North Australia Commission. Section 1 provides the short title of the Act, while Section 2 incorporates and integrates the Income Tax (Salaries) Assessment Act 1930, ensuring both acts are read as a single entity. The core provision of the Act, detailed in Section 3, imposes an income tax on periodical salary payments. Section 4 further specifies the tax rates, with varying percentages applied based on the position and salary of the taxpayer. For instance, ministers and presiding officers pay 15% of their salary, while other members of the House of Representatives pay 10%. Other taxpayers are taxed at a rate proportional to their annual salary.
The obligations imposed by this Act primarily revolve around the calculation and payment of the specified income tax on salaries. The taxpayer is responsible for ensuring that the correct amount of tax is deducted from their salary and remitted to the relevant authorities. This includes adhering to the tiered tax rates outlined in Section 4, which depend on the individual’s position and annual salary. Furthermore, taxpayers must keep accurate records and documentation to substantiate their salary amounts and tax payments. The Act requires that these records be maintained for a period specified by the Commissioner of Taxation, typically for a number of years following the end of the relevant tax year.
Breaches of the Act may lead to various penalties and legal consequences. The Act does not explicitly detail the penalties for non-compliance within the provided text, but under Australian law, non-compliance with income tax obligations can result in civil penalties, including fines. Additionally, wilful or negligent disregard of tax obligations can lead to criminal charges. The maximum penalties for such offences can vary, but they often include substantial fines and, in severe cases, imprisonment. The specific penalties would be determined based on the nature and extent of the non-compliance, as well as any aggravating factors, according to the Income Tax Assessment Act 1936 and other relevant legislation.